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English cities like Manchester, Birmingham, and Bristol poised for annual rental growth rates of 18% through 2027
July 24, 2024 | Staff Reporter | KSA, UK | Property Management
A recent survey by Select Property, a leading UK-based property developer and investment partner, reveals that 73% of KSA investors are eyeing lucrative opportunities in UK real estate, underscoring the country’s status as the premier global destination for KSA investors. With projects of GCC investments reaching $3.2 billion in 2024, driven by the market’s increasing affordability, the UK remains a magnet for investment. The GCC has largely contributed to this projection by realizing the vast potential of UK property as an investment vehicle for diversification.
The annual GCC investment in UK property has averaged $3.4 billion over the past decade, reflecting robust demand, reliable investment returns, substantial rental growth, and a diverse range of assets. Adam Price, CEO of Select Property, highlights that 75% of KSA investors favour cities like Manchester and Birmingham, which are considered the best places to invest in the UK. Price growth in these cities is expected to reach 19.2% and 19.3%, respectively. The UK and its property market attract savvy GCC investors as a proven method of diversification and diversification into the UK market allows KSA investors to spread risk and tap into stable and growing real estate opportunities.
“Increasingly, GCC investors are recognizing the UK as an attractive investment hub,” stated Price. “Our survey shows that 73% of KSA investors have considered investing in UK real estate, particularly in Manchester and Birmingham. These cities offer compelling opportunities with significant price growth and rental yield potential.”
According to the Select Property survey, 65% of investors prioritise real estate as their preferred investment strategy, aligning with Select Property’s commitment to providing tailored investment solutions. The survey also revealed that nearly nine out of ten (90%) KSA investors look at the UK as their key investment destination, with 85% expressing growing confidence in the country's real estate sector.
Adam Price further commented, "We've already witnessed a surge in investor interest following the recent launch of the Electronic Travel Authorization, further solidifying GCC investors as integral to the resilience and attractiveness of the UK real estate market. Over the past two decades, Select Property has facilitated access to high-quality UK real estate assets for savvy investors, and we look forward to leveraging our expertise to continue providing tailored investment solutions that align with the preferences of investors in Saudi Arabia and the wider GCC."
While the average rental increase nationwide stands at 11.1%, key English cities like Manchester, Birmingham, and Bristol are poised for annual rental growth rates of 18% through 2027. These cities benefit from significant regeneration efforts, expanding job markets, and strong rental demand.
